The launch of Avicanna Inc.’s (TSX:AVCN) RHO Phyto Deep Tissue Gels comes at a time when patients and consumers are seeking cannabinoid-based topical products
SmallCapPower | February 24, 2021: In case you missed it, Avicanna Inc. (TSX:AVCN) has been announcing a few key developments that will see the Company grow through strategic partnerships with key industry players and distribution channels.
The drivers of their potential growth would be the launch of plant-derived cannabinoid-based topical products RHO Phyto & Pura Earth in multiple market segments. Namely, the pharmaceutical market opportunity, adult-use cannabis market, and also the market for topicals, re+PLAY, designed specifically for the athletic and sports community.
Partnership with Medical Cannabis by Shoppers Drug Mart:
According to industry reports the global topical pain relief market is expected to reach $11.75 billion by 2025, growing at a CAGR of 6.25% from 2020 to 2025.
The launch of Avicanna’s RHO Phyto Deep Tissue Gels comes at a time when patients and consumers are seeking cannabinoid-based topical products in this market segment. The 2018 Cannabis Report by Deloitte points to a growing number of new users (almost 53% of survey participants) open to try topical products under the new legal norms and regulations. Additionally, 79% of these new users suggested a willingness to use a topical product for potential pain relief. Targeting these users, Avicanna’s RHO Phyto Deep Tissue Gels will soon be available on the Medical Cannabis by Shoppers Drug Mart™ online platform. By furthering clinical developments of the product’s formulations, the Company aims to eventually register the product as an over-the-counter drug in legally permissible markets for relief of local pain associated with inflammation directly competing with market incumbents such as Voltaren™.
Added impetus through the adult-use market:
Apart from advancing their objectives in the medicinal cannabis market, the Company’s multi-pronged retail strategy will also see them expand their distribution into specific consumer retail channels in February 2021.
The move to begin selling its advanced cannabinoid formulations into the Canadian adult-use cannabis market was seen by Raymond James analyst Rahul Sarugaser as a key to growing their revenue “materially from Q1 2021 onward,” with sales into provincial distributors starting this year. The analyst doubled-down on his “Outperform” rating on the Company with a $2.50 per share target price, which represents 42% potential upside from current levels.
Partnership with Harrington Wellness Inc for the athletic and sports community:
Former NBA star Al Harrington’s Harrington Wellness Inc aims to provide athletes and the active consumer market with CBD wellness products that helps them recover faster.
Avicanna recently struck a multi-level partnership that will see the two companies research, develop and optimize a bespoke line of CBD-based topicals called the “re+PLAY Products.” The partnership should leverage the individual strengths of the two companies, namely Avicanna’s proprietary deep tissue technology for cannabinoid delivery and Harrington Wellness’ deep understanding of the needs of professional athletes.
Under the initial three-year agreement, Avicanna has licensed the use of certain proprietary product formulations to Harrington Wellness to be used in connection with the manufacture and distribution of the re+PLAY Products in the United States. Additionally, Harrington Wellness has also licensed the use of the re+PLAY brand to Avicanna to be used in connection with the manufacture and distribution of the re+PLAY Products in Canada. The exchange of the licenses will see royalties being paid out to Avicanna and Harrington Wellness accordingly. In line with Avicanna’s research and evidence-based approach, the product formulations are also enrolled in several preclinical studies with leading Canadian medical institutions to assess their efficacy in chronic pain and osteoarthritis.
Visit Avicanna.com to download the corporate presentation and find out more about the company.
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